Wednesday, December 30, 2009

Dividend Aristocrats List for 2010

The dividend aristocrats list includes companies which have increased dividends for over 25 years in a row. It is equally weighted and re-balanced once an year. Over the past 3,5 and 7 years the index of elite dividend stocks has managed to outperform the S&P 500 by 5%, 3.7% and 4.40% respectively.

Cintas Corporation (CTAS) provides corporate identity uniforms and related business services in the United States and Canada. The company operates through four segments: Rental Uniforms and Ancillary Products; Uniform Direct Sales; First Aid, Safety, and Fire Protection Services; and Document Management Services.

In 2008 the dividend aristocrats’ index outperformed the S&P 500 by 15.50 percent. The dividend aristocrats lost 21.55% in 2008 versus the 37.00% loss for the S&P 500. So far in 2009 ( as of December 24) the S&P Dividend Aristocrats index is up 27.82%,, which is better than the 27.70% performance of S&P 500. Over the past 5 years the index has returned 3.81%, versus 0.71% for S&P 500.

Just because a company is on the list does not automatically make it a buy. Investors should make sure not to overpay for stocks, and should not overconcentrate in certain sectors. The complete list for 2010 could be found below:

I am surprised at CTL being on the list. I know the dividend is much higher than in previous, but it is a large % of FCF. Further, without intangible assets, CTL has significantly more debt than equity.

You have some great posts. When I looked at SDY in 2008 to 2009, the one negative was the yearly ads and drops. Updating quarterly may increase the ETF performance. For instance, some of the financial stocks would have gotten dropped a lot quicker. I am glad that you mentioned a stock in the list does not necessarily make it a buy. And as the market has stabilized during 2009, it looks like a good investment for a busy professional.

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